KRóNAN, ICELAND
- Original Article: Visit Link
Great retail principles in a small island
With just 400 000 inhabitants, 35% concentrated in the capital, Reykjavik, the territory is marked by desert highlands, mountains and 130 volcanoes – both active and inactive. Iceland is one of the smallest states in Europe. The main island covers 101 826 km2 but the entire country is 103 000 km2 in size, of which 62.7% is tundra. Iceland contains about 30 minor islands, including the lightly populated Grímsey and the Vestman naeyjar archipelago. Lakes and glaciers cover 14.3% of its surface and only 23% is vegetated.
Small size, But big Autonomy.
Owing to the harsh climate, agriculture is difficult. Fishing, however, stands out in Iceland’s food exports. The other predominant export is aluminium. Iceland has an autonomous currency, different from that used by most European nations. It is the Icelandic króna – symbol kr (currently, Euro 1 = 147,10 kr and R1 = 7,37 kr).
Krónan, Bonus and Netto are the main supermarket chains serving the local market. Among these, Krónan (‘the crown’ in Icelandic) is a small but well organised and ambitious retailer, capable of offering large product ranges at competitive prices. Further, frequent periodic discounts take place through various in-store activities.
The Krónan network is spread across the entire island. Founded in 2000, Krónan is part of the Icelandic holding company ‘Festi’. The sales of goods and services of this Group, according to their 2024 annual report was 41 946 million króna, with profits of 4 018 million (9.57%).
Festi, the holding company
The holding company Festi, which evidently is not as profitable as some European counterparts, owns a variety of brands aimed at the consumer…
Bakkinn, which specialises in warehousing, packaging, branding, dispensing and distribution of products for customers who choose to fully or partially outsource their warehouse operations…
Elko, the largest electronics store in the country, opened in 1998 and immediately became the leader in its field in Iceland. lyfja works towards the goal of extending and increasing the quality of life.
Lyfja began its operations with the opening of Lyfja Lágmúli in 1996 and today operates 44 pharmacies and branches all around the country in addition to an online store and app.
N1 is a group of fuel stations and services for people, vehicles and businesses across the country.
Krónan is the most important company in the Festi holding, with 26 fresh and smart discount stores, all of which are Nordic Ecolabel certified. Krónan’s primary goal is to bring the right product selection to consumers in the most affordable and simple way possible.
What Krónan offers
Fresh food (fruit and vegetables, meat and fish, dairy products, baking products), groceries and cleaning aids, non-food products for household use and, finally, personal hygiene items constitute balanced assortments that include both purely Icelandic articles and international well-known brands. This is a versatile commercial policy aimed at satisfying disparate preferences, with quality and convenience.
Innovative services are also offered (digital sales channels, automated checkout stations and, in some cases, even the possibility of consuming on the site) aimed at completing the usability of the commercial space. In 2020, Krónan’s Smart Store opened, where customers can complete their home shopping with one click and have the products delivered to their home or picked up in-store.
With the introduction of Scan and Scan in 2021, customers in-store can scan products, add them directly to a cart or bag, and pay for them – all with the Krónu app! Furthermore, product ranges have been developed that follow an eco-sustainable policy.
In summary, Krónan offers:
- Convenient shopping locations
- North European sensitivity to ecological factors, including reusable packaging
- Healthy lifestyle choices
- Food safety.
